THE ORGANIZATION FOR ECONOMIC RESEARCH IN CIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000300010054-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: February 12, 2002
• Sequence Number: 54
• Publication Date: January 6, 1951
• Content Type: MEMO

STANDARD,FORM NO.
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roved For Release 2002/02/25: CIA-RDP75-00662R 300 0154 2 `
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Office Memorandum ? UNITED STATES GOVERNMENT
25X1A9A
TO
FROM
SUBJECT: The Oreanization_ for Economic Research in CIA
DATE: 6 January 1951
1. Economic research and analysis must, in some measure, be
done within CIA. This is to be insisted upon. The reasons are
many. There are commodities and manufacturing industries of im-
portance to the national security which are not likely to be
adequately studied outside of CIA. The same thing may be said of
many aspects of functional analysis. Those who have some know-
ledge of economic research and analysis in dasnington will hardly
doubt that CIA should undertake research and analysis of significant
commodities and industries as well as research of a general functional
sort.
2. Economic research must also be done within CIA in such
areas as are of outstanding importance to the security of the
United States. The Soviet Union is obviously the chief of these
areas. But attention to the Soviet Union calls for the study of
the countries in the Soviet Orbit and of neighboring countries
that may be brought within the Soviet Orbit. It is hardly less im-
portant to deal with neighboring countries that may be expected to
resist inclusion in this Orbit. In any case the centering of at-
tention in the Soviet Union should not be viewed as setting up an
arbitrary limit upon the area to be studied.
It is clear, to point out the obvious example, that Chine must
be fully and exhaustively studied. The economic position of China
in its new relations with Soviet Russia, the attitude of the Chinese
toward domestic changes and the new international relations of the
country problems of manpower and of the availability of skilled labor
are a few among the subjects which are indicated as having increased
importance. Growing dependence on covert intelligence may be a further
reason for CIA. attention to China.
The significance of China is, in turn, merely somewhat greater
than that of the countries of Southeast Asia and such countries as
India, Iran and Turkey.
Latin America calls for minor attention, but there should be in
CIA a center of information as to what others are doing on Latin
America. Lven Latin America is not to be entirely disregarded.
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3. The required analysis must be related to the problems
that rise to importance from time to time and to the problems of the
long-run national security. The suggestion is made that within the
research division there be set up a committee of research analysts.
This committee might have the additional functions of planning and
reviewing research projject8, but there are dangers in giving it too
many functions, especially those of a routine sort. Effective
discussion and participation in analysis by a group is difficult
to bring about but highly useful if it can be done. The further
suggestion is offered that the chairman of the committee of research
analysts, whatever it is called, should sit in with the group of
general analysts in ONE. He should in any case be an observer
without a vote and attend some of the meetings of the 0/_E group.
It may be suggested, also, that one of the economists from the
0/NE group of analysts sit with the committee of researoh analysts.
4. The relation between the division or divisions devoted to
economic research and to other agencies in ;Washington carrying on
economic research requires special examination. It is suggested
that inter-agency relations be the responsibility of a single
officer in CIA. He should be an important officer of the division.
He should have a committee or group within the division working
with him. he should be given power to deal authoritatively with
other agencies and to comae to definite arrangements with them. He
should lnzow what is being done in other agencies; he should be able
to influonce what is being done, to offer true cooperation and to
bring about needed research at the request of CIA.
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